Section V: Financial Projections and Information
The financial projections of your business plan are very important to investors, lenders and to you too of course! Yet, many new business owners struggle to understand how to create a pro-forma or projected income statement, statement of cash flow and balance sheet. That's okay! In this section you'll learn what each of these financial statements is about, how they are different and what they include. If you have some background in accounting or finance, the sections below will give you great guidance on what to include in your business plan and how to present it. If you are a future business owner without any accounting background, you'll learn the basics of each type of financial statement so that when you reach for outside help, you won't be in the dark. Better still, by reading the information below, you'll gain the confidence to discuss your financial statements with a lender, banker or investor. When making a loan or investment, bankers will want to know that you understand the basics of financial statements. The information, guidelines, examples and templates in the sections below will make sure that you do.
Small Business Plan Template - Financial Sections
Click any Bold Section Title in the outline below for a detailed description and complete overview of what should be included, mistakes to avoid, and important considerations.
Financial Projections - Overview
Income Statement
Cash Flow
Balance Sheet
Capitalization and Use of Funds
• Financial Needs
• Structure (Debt, Equity)
• Startup Expenses
• Use of Funds
